A career in the real estate industry can be lucrative. However, becoming a licensed real estate agent is a long road. If you want to walk this road to become a licensed real estate agent or realtor, you must know the cost you must spend.
So, how much does it cost to get a real estate license?
Before you determine your career path in the real estate sector and start the courses, be sure to learn about the cost of this career path.
Go through this article thoroughly to learn about the costs of getting a real estate agent’s license.
How Much Does It Cost To Get A Real Estate License?
The first cost involved in becoming a realtor or a real estate agent is the course-related cost. Developing a career in the real estate industry first requires the education related to it. One must first complete the pre-licensing courses from an erupted real estate school in the States.
The cost involved with the course depends on the duration of the course you have to complete. Every state in the US has its requirements for course hours. Also, the cost for the course can vary based on whether you are taking an online or an offline course.
Clear differences are visible when a state like Colorado requires 168 hours of pre-licensing exam education. On the other hand, Georgia requires 75 hours, and Alabama requires 60 hours of course hours.
Estimated Cost: However, a general estimation of the required education would cost $350 on average.
Licensing Exam Fees
Once you have finished the courses, you are ready and eligible to appear for the licensing exam. This phase also involves a specific cost amount. According to state laws, you have to go through a background check, fingerprint test, and cost for the exam. However, all of these costs can vary based on where you are taking the exam, the background test, and the fingerprint test. Here is an average estimation of the fees –
Application Fee: $25-$30
State Exam: $50
Fingerprints and Background Check: $100-$125
Real Estate License: $150
Estimated Total Cost: $350-$400
But it would help if you also consider other additional costs such as – real estate broker fees, membership fees, fees for realtors, business expenses, and fees for REALTORS. These costs vary from one state to the other.
However, you must know that the cost of getting your licensing will also vary based on the type of listening you want to get. The cost of a sales license will be different than the cost of a broker’s license. Below are a few more expense areas you must consider
Real Estate Broker Fees
Now that you have become a licensed real estate agent, you are ready to worry about real estate broker fees. Licensed agents have to work with brokers who take care of their regular business expenses. These expenses are associated with the day-to-day operations. Brokers help you by taking care of your office internet, photocopies, office supplies, and more. Real estate agents usually pay the brokers a percentage of their commission to cover all these expenses.
Estimated Total Cost: $25–$500+/month.
Real Estate Membership Fees
Now, if you are not just done with being a real estate agent, you might as well aim to become a realtor. This would require you to apply for a NAR membership. But if you want to just want to keep being a state real estate agent, you must become a member of the state or the local real estate board. These also have costs associated with them. Also, real estate agents must pay for their local Multiple Listing Services membership. The State association fees will typically cost you around a few hundred dollars. But it may vary from state to state.
Estimated Total Cost: $200/year.
Real Estate Business Expenses
Your broker will take care of Some of the costs involved with being a real estate agent. But, some expenses will go directly from your pocket. These expenses include having office space, office supplies, software, equipment, client meetings, lunches, and more. You can add these expenses to your list if you are considering a career in this industry.
Estimated Total Cost: Depends on your state, location, and the amount you want to spend on specific areas.
Marketing Fees
If you want to upskill and choose a career in REALTORS, you have to spend a massive portion every year on marketing. When starting a career in the real estate industry as a REALTOR, initially, you will spend around $1000/year for marketing your properties and yourself. Simply, the maintenance cost of a website alone is around $1500/year.
In this case, some common expenditures include buying your business cards, putting up signage, creating flyers and brochures, and paying for advertising.
Estimated Total Cost: $1000/year.
Continuing Education Costs
Successful real estate agents and professionals usually opt for continuing education. Continuing education post-licensing will also cost a few hundred dollars every year. When real estate agents start to specialize and get their areas of experience, they might need continuing education. Continuing education can help real estate professionals gain more knowledge in their specific niche. Boosting one’s confidence through the continuing education program makes the costly course worth it.
Estimated Total Cost: $50 to $300
Real Estate License Maintenance Cost
How much does it cost to maintain a real estate license? Yes, there is also some cost involved with maintaining your real estate license. Even when you have gotten the license and continue your job as an agent, you have to keep a specific portion ready for maintenance costs. Most of these costs involve getting MLS, association, and lockbox fees. So, there might not be a need to think about them additionally. But you will still have to spend some amount on maintenance.
Final Words
The licensing fee and the pre-licensing course combined can cost you around $350 to $1000, based on your state. So, how much does it cost to get a real estate license? Do you have the answer to this question now? Since you can belong to any of the 50 states in the US, the cost will vary. But, it should not be beyond the range of cost we have explained here.
Let us know if this article was helpful. Also, share your feedback with us if you have any. Thank you for reading.
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